Abstract:
Bank is very old institution that is contributing towards the development of any economy
as well as plays a vital role of financial intermediary of a country. Bank is treated as an
important service industry in modern world. But due to globalization and free market
economy, this industry is facing severe competition in Bangladesh, and implementation
of the clauses of WTO will further increase this competition. This research plan is to
investigate the major reforms undertaken in the banking sector of Bangladesh; the affect
of banks overall service quality, product quality, and to evaluate their impact on the
financial development and individual performances of the banks. Development of
financial system is measured by financial deepening, competitiveness and profitability
within banking sector. Individual performance of the banks are measured by “Capital
Adequacy, Asset Quality, Management Efficiency, Earning Performance and Liquidity”
of the banks. The study reveals that the financial system in Bangladesh has been
developed to some extent. However, we observe a mixed result for different types of
banks in case of performance evaluation of the banks. While the local banks failed to
achieve satisfactory improvement, the foreign banks were able to improve their
performance considerably perhaps for having strong and efficient management, and
additional compliance with the policy, guidelines, standards issued by their head office.
